What is Raptor Pharmaceutical Long-Term Debt & Capital Lease Obligation?
Long-Term Debt & Capital Lease Obligation is the debt and capital lease obligation due more than 12 months in the future. Raptor Pharmaceutical's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2016 was $90.2 Mil.
LT-Debt-to-Total-Asset is a measurement representing the percentage of a corporation's assets that are financed with loans and financial obligations lasting more than one year. The ratio provides a general measure of the financial position of a company, including its ability to meet financial requirements for outstanding loans. It is calculated as a company's Long-Term Debt & Capital Lease Obligation divides by its Total Assets. Raptor Pharmaceutical's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2016 was $90.2 Mil. Raptor Pharmaceutical's Total Assets for the quarter that ended in Jun. 2016 was $354.9 Mil. Raptor Pharmaceutical's LT-Debt-to-Total-Asset for the quarter that ended in Jun. 2016 was 0.25.
Raptor Pharmaceutical Long-Term Debt & Capital Lease Obligation Historical Data
The historical data trend for Raptor Pharmaceutical's Long-Term Debt & Capital Lease Obligation can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
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Raptor Pharmaceutical Long-Term Debt & Capital Lease Obligation Chart
Raptor Pharmaceutical Long-Term Debt & Capital Lease Obligation Calculation
Long-Term Debt is the debt due more than 12 months in the future. The debt can be owed to banks or bondholders. Some companies issue bonds to investors and pay interest on the bonds.
Long-Term Capital Lease Obligation represents the total liability for long-term leases lasting over one year. It's amount equal to the present value (the principal) at the beginning of the lease term less lease payments during the lease term.
The interest paid on companies' debt is reflected in the income statement as interest expense. If a company has too much debt and it cannot serve the interest payment on the debt or repay the matured debt, the company risks bankruptcy. Peter Lynch famously said: A company that does not have debt cannot go bankrupt.
A company's long term debt may have different dates of maturity and interest rates, depending on the terms.
Usually a company issues long term debt to pay for its capital expenditures. Borrowing allows the company to do things that otherwise cannot be done with only the capital it has. But debt can be risky.
Raptor Pharmaceutical (NAS:RPTP) Long-Term Debt & Capital Lease Obligation Explanation
LT-Debt-to-Total-Asset is a measurement representing the percentage of a corporation's assets that are financed with loans and financial obligations lasting more than one year. The ratio provides a general measure of the financial position of a company, including its ability to meet financial requirements for outstanding loans. A year-over-year decrease in this metric would suggest the company is progressively becoming less dependent on debt to grow their business.
Raptor Pharmaceutical's LT-Debt-to-Total-Asset ratio for the quarter that ended in Jun. 2016 is calculated as:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Buffett says that durable competitive advantages carry little to no long-term debt because the company is so profitable that even expansions or acquisitions are self financed.
We are interested in long term debt load for the last ten years. If the ten years of operation show little to no long term debt, then the company has some kind of strong competitive advantage.
Warren Buffett's historic purchases indicate that on any given year, the company should have sufficient yearly net earnings to pay all long term within 3 or 4 year earnings period. (e.g. Coke + Moody's = 1yr)
Companies with enough earning power to pay long term debt in less than 3 or 4 years is a good candidate in our search for long term competitive advantage.
BUT, these companies are targets for leveraged buy outs, which saddles the business with long term debt.
If all else indicates the company has a moat, but it has ton of debt, a leveraged buyout may have created the debt. In these cases the company's bonds offer the better bet, in that the companys earnings power is focused on paying off the debt and not growth.
Important: little or no long term debt often means a Good Long Term Bet
Raptor Pharmaceutical Long-Term Debt & Capital Lease Obligation Related Terms
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Raptor Pharmaceutical (Raptor Pharmaceutical) Business Description
Raptor Pharmaceutical Corp was initially incorporated in Nevada on July 29, 1997 as Axonyx Inc. In October 2006, Axonyx Inc. and its then wholly-owned subsidiary completed a reverse merger, business combination with TorreyPines Therapeutics, Inc., reincorporated in Delaware and changed the corporate name to 'TorreyPines Therapeutics, Inc. On September 28, 2009, the Company name was again changed from TorreyPines Therapeutics, Inc., to Raptor Pharmaceutical Corp. It is a biopharmaceutical company focused on developing and commercializing transformative treatments for people affected by rare and debilitating diseases. The Company's product PROCYSBI cysteamine bitartrate, delayed-release capsules received marketing approval from the U.S. Food and Drug Administration on April 30, 2013 for the management of nephropathic cystinosis in adults and children six years and older. The European equivalent, PROCYSBI gastro-resistant hard capsules of cysteamine, received marketing authorization on September 6, 2013 from the European Commission, as an orphan medicinal product for the management of nephropathic cystinosis for marketing in the European Union. PROCYSBI received 7 years and 10 years of market exclusivity as an orphan drug in the U.S. and the EU, respectively. PROCYSBI is an approved therapy for the management of nephropathic cystinosis, a rare, life-threatening metabolic lysosomal storage disorder that causes the rapid, toxic accumulation of cystine in all cells, tissues and organs in the body. PROCYSBI capsules contain cysteamine bitartrate in the form of microspheronized beads that are individually coated to create delayed and extended-release properties, allowing patients to maintain consistent therapeutic systemic drug levels over a 12-hour dosing period. Cysteamine is a molecule generated in the cell during the metabolism of cysteine. The Company's pipeline products include; its proprietary delayed-release form of cysteamine, or RP103. The Company currently has product candidates in clinical development designed to potentially treat Huntington's disease, Non-alcoholic fatty liver disease, Leigh syndrome and other mitochondrial disorders and aldehyde dehydrogenase deficiency. The Company's preclinical programs are based upon bioengineered novel drug candidates that are designed to target cancer and other diseases. Its other clinical-stage product candidates include: Convivia its proprietary oral formulation of 4-methylpyrazole, for the potential management of acetaldehyde toxicity due to alcohol consumption by individuals with aldehyde dehydrogenase, or ALDH2, deficiency, an inherited metabolic disorder. With respect to any of the Company's product candidates for which it obtain FDA approval, it will be subject to ongoing FDA obligations and continued regulatory review, which may result in additional expense.
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